Edict of the President of the Republic of Belarus

Edict of the President of the Republic of Belarus

No. 359 of June 30, 2008

[Amended as of March 23, 2016]

 

On Some Questions of Providing Guarantees of the Government of the Republic of Belarus on Credits Extended by Banks of the Republic of Belarus

 

With a view of improving the procedure of providing guarantees of the Government of the Republic of Belarus on credit extended by banks of the Republic of Belarus I decree:

1. To approve the enclosed Regulations on the Procedure of Providing Guarantees of the Government of the Republic of Belarus on Credits Extended by Banks of the Republic of Belarus.

2. To establish that the execution of guarantees of the Government of the Republic of Belarus, local executive and administrative bodies, provided prior to the entry into force of this Edict on credits extended by banks of the Republic of Belarus to legal persons of the Republic of Belarus, and being provided from 1 July to 31 December 2008 according to Regulations on the Procedure of Providing of Guarantees of the Government of the Republic of Belarus on Credits Extended by Banks of the Republic of Belarus, approved by this Edict is carried upon the expiry of the final repayment deadline in the order which was in effect prior to the entry into force of this Edict, and the execution of guarantees provided from 1 January 2009 – in the order specified by mentioned Regulations.

In the event of the modification from January 1, 2009 of conditions of extending  credits,  not connected with an increase of the credit amount and the interest rates for using them, and also with prolongation of terms of their repayment, and with introduction of changes (additions) into the decision of the Council of Ministers of the Republic of Belarus, in accordance with which a guarantee of the Government of the Republic of Belarus is provided prior to the entry into force of this Edict or from 1 July to 31 December 2008, the execution of guarantees of the Government of the Republic of Belarus is carried out upon the expiry the credit repayment deadline.

3. Regional, City-of-Minsk, district and municipal (cities of regional subordination) executive committees are entitled to provide, on conditions similar to those specified in this Edict, guarantees of local executive and administrative bodies on credits extended by banks of the Republic of Belarus to legal persons of the Republic of Belarus.

4. Payments made from local budgets in accordance with guarantees of local executive and administrative bodies are levied by the bank in a uncontested order from the credit receivers’ accounts (with the exception of correspondent accounts, and also from accounts on budgetary means record of the state treasury and local budgets) with charging an interest on the amount paid by a local executive and administrative body:

in Belarusian rubles, - in the amount of the refinance rate of the National Bank, established on the date of the interest payment;

in foreign currency, – in the amount of the existing average rate prevailing in banks of the Republic of Belarus on fixed-term deposits in foreign currency, but not less than the amount determined by the law on the republican budget for the next financial year.

Interest collected by a bank is charged beginning from the day following the day of payment from the local budgets by local executive and administrative bodies, in accordance with the guarantees of local executive and administrative bodies.

The levying of the mentioned payments is made on the basis of the bank’s decision with their further remittance to local budgets.

5. [Not given]

6. [Not given]

7. [Not given]

8. The Council of Ministers of the Republic of Belarus, the National Bank, regional executive committees and the Minsk City Executive Committee shall, within a six month period, ensure the bringing of normative legal acts in accordance with this Edict and take other measures on its implementation.

9. Regional and the Minsk City Councils of Deputies shall, within a three month period, ensure the bringing of their decisions in accordance with this Edict and take other measures on its implementation.

10. The Edict enters into force from 1 July 2008 with the exception of clauses 8, 9 and this clause that enter into force from the date of the official publication of this Edict.

 

President of the Republic of Belarus                                                                                                                                                                                                                         A.Lukashenko

 

APPROVED

Edict of the President

of the Republic of Belarus

 No. 359 of June 30, 2008

 

 

REGULATIONS

Regulations on the Procedure of Providing Guarantees of the Government of the Republic of Belarus on Credits Extended by Banks of the Republic of Belarus

 

1. These Regulations determine the procedure and conditions of the provision of guarantees of the Government of the Republic of Belarus on credits extended by banks of the Republic of Belarus (hereinafter - guarantees of the Government of the Republic of Belarus), and also the method of their execution.

2. Guarantees of the Government of the Republic of Belarus are provided on the basis of a corresponding decision of the Council of Ministers of the Republic of Belarus on the credit extended by banks of the Republic of Belarus to legal persons – residents of the Republic of Belarus, except for budgetary organizations, banks, insurance and non-bank credit and financial organizations (hereinafter – legal persons).

Guarantees of the Government of the Republic of Belarus are not rendered on credits extended by banks of the Republic of Belarus to legal persons which have indebtedness for payments to the republican budget, local budgets, budgets of state non-budgetary funds, and also those which did not fulfill their obligations on credits extended earlier, including those extended against guarantees of the Government of the Republic of Belarus, local executive and administrative bodies, and also those that did not fulfil their obligations under executed guaranties of the Government of the Republic of Belarus, local executive and administrative bodies, budget loans, budget credits or that fulfilled the said obligations at the expense of budgetary means, and, unless otherwise established by the legislative acts, on credits being extended by the bands for realization of the state programs.

3. Legal persons being credit receivers on credits of banks of the Republic of Belarus extended against guarantees of the Government of the Republic of Belarus, make the payment for providing guarantees of the Government of the Republic of Belarus to the republican budget in the amount and the order, established by the law on the republican budget for the current financial year.

4. The guarantee of the Government of the Republic of Belarus is provided for the total amount of the credit or its part and for interest for using the credit.

5. [Excluded]

6. To prepare a decision of the Council of Ministries of the Republic of Belarus on providing a guarantee of the Government of the Republic of Belarus, legal persons submit the following documents to the republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus, in the subordination of which they are, and legal persons which do not have subordination (do not make part of such organizations) submit the documents to a regional (Minsk City ) executive committee:

6.1 an application for a guarantee of the Government of the Republic of Belarus on the form established by the Council of Ministries of the Republic of Belarus with indication of the credit sum, the purposes of its use, and the term of its repayment, signed by an official of the legal person;

6.2. a positive report of the state comprehensive examination (on credits extended for the realization of investment projects);

6.3. a draft of the credit contract being concluded with a bank, or a written preliminary consent of the bank with indication of the amount and conditions of the credit;

6.4. a feasibility study on expediency of providing the credit against the guarantee of the Government of the Republic of Belarus and the probability of its return;

6.5. the balance sheet for previous year, and also for the current year on the last reporting date;

6.6. statements on the last reporting date from:

the tax body on the status of settlements with the budget on the form established by the Ministry on Taxes and Duties;

the Fund for Social Protection of the Population of the Ministry of Labour and Social Protection on the status of settlements with this Fund on the form approved by the Ministry of Labour and Social Protection;

banks where accounts of the legal person are opened on indebtedness on obtained loans (credits), including those that were extended against guarantees of the Government of the Republic of Belarus, local executive and administrative bodies;

the local executive and administrative body about settlements on loans received from the local budget, executed guarantees of this body;

the Ministry of Finance, its territorial bodies about settlements on loans received from the republican budget, executed guarantees of the Government of the Republic of Belarus on the form approved by this Ministry.

Bodies (organizations) indicated in this sub-clause submit corresponding statements to legal persons within 15 days from the day of their application;

6.7. a copy of the report of the last inspection of financial and economic activities conducted by the controlling bodies or by departmental control and supervision service of republican bodies of state administration, other state organizations subordinated to the Government of the Republic of Belarus or an audit report about the accuracy of the annual accounting (financial) reports;

6.8. copies of constituent documents.

7. On the basis of analysis of submitted documents the republican body of state administration, other state organization subordinated to the Government of the Republic of Belarus, a regional (Minsk City ) executive committee prepares a draft decision on providing a guarantee of the Government of the Republic of Belarus having regard to the limit of internal debt guaranteed by the Republic of Belarus, to purposes for which the credit is extended, the financial situation of the legal person, and submit it, in the established order, to the Council of Ministers of the Republic of Belarus .

8. The decision of the Council of Ministers of the Republic of Belarus on the provision of a guarantee of the Government of the Republic of Belarus shall stipulate:

the full name of the legal person – credit receiver (hereinafter – the credit receiver);

the name of the bank;

the amount of credit and the interest rate for using it;

the purposes for which the credit is extended;

the credit repayment period;

the guarantee for the amount of credit (its part) and the interest rate for using it (with the exception of interest compensated at the expense of means of the republican budget, and also state special-purpose budgetary funds);

the amount of payment for the provision of a guarantee calculated from the credit sum.

9. After the adoption by the Council of Ministers of the Republic of Belarus of the decision on providing the guarantee of the Government of the Republic of Belarus was concluded, the Ministry of Finance, on the basis of a copy of the credit contract to the amount specified in such a decision, provided by the bank, and also of a copy of the payment document about the remittance of the payment for the provision of the guarantee, formalizes the guarantee(s) of the Government of the Republic of Belarus for the sum specified in such a decision according to the form determined by the Council of Ministers of the Republic of Belarus;

Introducing changes (additions) into the decision of the Council of Ministers of the Republic of Belarus on providing guarantees of the Government of the Republic of Belarus in view of changing the conditions of extending credits is carried out in the order established by clauses 6-8 of these Regulations. After the adoption of the mentioned decision, the Ministry of Finance formalizes the guarantee of the Government of the Republic of Belarus on a new blank form, recalling the guarantee provided earlier from the bank.

10. In the event of failure of the credit receiver to fulfill obligations on the repayment of credit and/or payment of the interest for using it, the bank sends, upon expiry of ten banking days from the maturity day of the payment on credit, a written notice about the necessity of executing a guarantee of the Government of the Republic of Belarus and copies of documents confirming presentation of demands to the credit receiver to the Ministry of Finance.

11. The Ministry of Finance, within ten working days from the day of receipt of the documents specified in clause 10 of these Regulations, ensures the execution of the guarantee of the Government of the Republic of Belarus within the limits of means specified in the republican budget for the current financial year for these purposes, and also means of state special-purpose budgetary funds.

The guarantee of the Government of the Republic of Belarus, not executed in the current financial year, is executed by the Ministry of Finance at the expense of means specified by the law on the republican budget for the next financial year on executing guarantees of the Government of the Republic of Belarus.

12. Payments, made from the republican budget in accordance with guarantees of the Government of the Republic of Belarus, are levied by the bank in a uncontested order from accounts of the credit receiver (with the exception of correspondent accounts, and also from accounts on budgetary means record of the state treasury) with charging interest on the amount paid by the Ministry of Finance:

in Belarusian rubles, - in the amount of the refinance rate of the National Bank, established on the date of the interest payment;

in foreign currency, – in the amount of the average rate prevailing in banks of the Republic of Belarus on fixed-term deposits in foreign currency, but not less than the amount determined by the law on the republican budget for the next financial year.

Interest charged by the bank, is accrued beginning from the day following the day of making the payment to the republican budget by the Ministry of Finance, in accordance with the guarantees of the Government of the Republic of Belarus.

The recovery of mentioned payments is made on the basis of a bank’s decision with their subsequent remittance to the republican budget.

13. The Ministry of Finance has the right to reduce the amount of financing to the credit receivers if they are financed from the republican budget by the sum of payments made or to be made from the republican budget in accordance with guarantees of the Government of the Republic of Belarus and the interest charged thereon.

14. The credit receiver bears responsibility for the designated use of credit extended against a guarantee of the Government of the Republic of Belarus, the timeliness of its repayment and is obliged to present, on a monthly basis,  data about the status of settlements on credits extended against guarantees of the Government of the Republic of Belarus, agreed with the bank, to the correspondent republican body of state administration, other state organization subordinated to the Government of the Republic of Belarus, regional (Minsk City ) Executive Committee, which submitted the draft decision on providing a guarantee of the Government of the Republic of Belarus for consideration to the Council of Ministers of the Republic of Belarus.

15. Control over the designated use of the credit and also the timely repayment of indebtedness on credits of banks of the Republic of Belarus, extended against guarantees of the Government of the Republic of Belarus, is carried out by the bank, the Ministry of Finance, the republican body of state administration, other state organization subordinated to the Government of the Republic of Belarus, the regional (Minsk City) executive committee, which submitted the draft decision on the providing a guarantee of the Government of the Republic of Belarus for consideration to the Council of Ministers of the Republic of Belarus.

16. Banks present, by the tenth day of every month, data about the credit indebtedness of the credit receiver, settlements on credits extended against guarantees of the Government of the Republic of Belarus, local executive and administrative bodies to the Ministry of Finance, regional, the Minsk City, district, municipal (region-subordinated cities) executive committees.

17. The Ministry of Finance carries out record-keeping of provided guarantees of the Government of the Republic of Belarus and submits, quarterly by the twentieth of the month following the reporting quarter, to the Council of Ministers of the Republic of Belarus a report on credit indebtedness of the credit receiver, settlements on credits extended against guarantees of the Government of the Republic of Belarus.

 

 

* unofficial translation *